In a landscape shaped by evolving threats, complex regulations, and pressure for digital innovation, financial services and insurance (FSI) organizations are reassessing their cloud strategies. Public cloud adoption may have surged, but institutions are now pivoting to private cloud—not as a fallback, but as a strategic enabler. According to Broadcom’s Private Cloud Outlook 2025 report, 53% of enterprises rank private cloud as their top priority for deploying new workloads over the next three years, and 92% use private cloud for both traditional enterprise apps and modern, cloud-native workloads.
At Broadcom, we see private cloud as a foundational capability that enables banks, insurers, and capital markets firms to modernize securely, meet compliance mandates with confidence, and deliver differentiated digital services—without compromising on control or cost visibility. We help FSI customers deploy a modern private clouds with VMware Cloud Foundation (VCF). VCF gives customers a single unified platform that supports all applications—traditional, modern, or AI—with consistent operations, governance, and controls across the private cloud environment.
Why Private Cloud Is Reshaping Financial Services and Insurance Cloud Strategies
1. Regulatory Compliance and Data Sovereignty
Financial institutions must navigate an increasingly complex regulatory environment—from GDPR to DORA to FFIEC guidelines. Private cloud provides the locality, transparency, and control necessary to align with these mandates.
- 66% of IT leaders are “very” or “extremely” concerned about public cloud compliance
- 92% of organizations trust private cloud for security and compliance needs
VCF integrates compliance frameworks directly into infrastructure, making it easier to demonstrate regulatory alignment across jurisdictions.
2. Security and Risk Management
The financial sector remains a top target for cyber threats. VMware enables a proactive zero-trust security posture with intrinsic capabilities like micro-segmentation via NSX and workload isolation in vSphere.
- Security is the leading driver of workload repatriation from public cloud
- 49% cite data privacy and security as the top barrier to GenAI adoption
- Organizations are now deploying AI workloads in private clouds nearly as often as public clouds (55% vs. 56%)
With VCF, FSI firms can confidently run sensitive applications—like payment processing or trading algorithms—in a fortified private environment.
3. Performance and Resilience at Scale
From real-time fraud detection to latency-sensitive trading platforms, performance matters. VMware VCF delivers deterministic, low-latency infrastructure that can be optimized for specific FSI workloads.
- VCF dynamically balances workloads and leverages AI/ML for predictive scaling and optimal performance
- High-throughput networking supports large-scale, high-bandwidth application traffic
- Built-in fault tolerance, automated disaster recovery and business continuity, and non-disruptive rolling upgrades keep workloads online
4. Financial Predictability and Efficiency
Unlike public cloud’s variable pricing models, private cloud offers cost stability and optimization—particularly valuable to CFOs and CIOs seeking long-term return on IT investments.
- 90% of organizations value private cloud’s financial visibility and predictability
- 49% believe more than a quarter of their public cloud spend is wasted
- 94% report at least some level of waste in their public cloud spend
With VCF, institutions can right-size environments, avoid overprovisioning, and tie cost models to specific business outcomes.
VMware’s Private Cloud Platform: Purpose-Built for Financial Services
VMware Cloud Foundation provides a unified private cloud platform for managing traditional and cloud-native applications with consistency, security, and operational clarity.
Key capabilities include:
- Consistent operations across on-prem, private, and public cloud with VCF Operations for policy automation and observability
- Integrated security and compliance for regulatory standards like DORA, PCI-DSS, and FFIEC
- Hybrid flexibility, with full support for running consistent VCF environments on AWS, Azure, and Google Cloud
- Unified workload management that lets firms modernize at their own pace—running containers alongside mainframe-era systems
Addressing Operational Challenges and Talent Gaps
Adopting a private cloud in FSI requires more than tools—it requires organizational alignment.
- 33% of organizations cite siloed IT teams as a top barrier to private cloud success
- 30% point to a lack of in-house skills and expertise
- Yet 81% are now evolving toward platform-based technical teams that align more naturally with private cloud models
VMware’s professional services and partner ecosystem help bridge these gaps—accelerating time to value and reducing operational friction.
Use Case: Meeting DORA Requirements with VCF
DORA mandates new standards for ICT risk management, incident reporting, and third-party oversight.
VMware private cloud helps FSI firms comply by:
- Segmenting workloads and limiting blast radius using NSX
- Enhancing observability and incident response via VMware Aria Operations
- Retaining operational control by minimizing overreliance on hyperscalers
This proactive posture aligns with DORA’s focus on resilience, business continuity, and systemic risk management.
VCF Provides Flexibility between Private and Public Cloud
Financial services leaders aren’t choosing between private and public cloud—they’re orchestrating both. VMware enables this flexibility by providing:
- Cloud bursting for seasonal or batch workloads
- Disaster recovery integration across multiple environments
- Cloud-smart GenAI enablement with control over data and compute locality
Final Thought: A Strategic Leap Forward
For financial services and insurance institutions, private cloud isn’t a regression—it’s a future-ready move toward resilience, efficiency, and control. It enables firms to:
- Comply with global regulations
- Protect sensitive financial data
- Support innovation in a cost-predictable way
At Broadcom, we’re helping FSI leaders make the cloud work for them—not the other way around.
